‘Third-class PR’: Congo’s Jairam Ramesh slams Center over tax decentralization |  Latest India News
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‘Third-class PR’: Congo’s Jairam Ramesh slams Center over tax decentralization | Latest India News

Congress general secretary Jairam Ramesh on Monday slammed the Center after it allowed tax devolution to states to be approved in June, calling the move “third-class PR”. According to the Congress leader, tax devolution is a “constitutional right” decided by the Finance Committee.

Congress leader Jairam Ramesh (ANI files)

“The Ministry of Finance has just announced what is billed as a major tax devolution to the states. This was undoubtedly done at the behest of one-third of the Prime Minister… Decentralization of taxes to states is not a special favor performed by people of non-biological origin. This is third-rate PR trying to portray what is legally due to the states as giving out prasad,” Jairam Ramesh wrote in a post on X, formerly known as Twitter.

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On Monday, the Center gave the go-ahead for tax devolution 1,39,750 crore to states for June. According to the Ministry of Finance, in addition to the regular publication of the decentralization amount for June, another installment will be launched.

“That adds up to 1,39,750 crore in the current month. This will enable state governments to accelerate development and capital expenditure,” the ministry said in a statement.

Currently, 41 per cent of taxes collected by the Center is distributed in 14 installments among states during the fiscal year. With this release, the total amount distributed to states (for FY 2024-2025) through June 10, 2024 is 2,79,500 crores.

In particular, the 2024-25 mid-term budget includes a provision of: 12,19,783 crore for transfer of taxes to states.

This came after senior BJP leader Nirmala Sitharaman retained the key finance ministry while President Draupadi Murmu, on the advice of Prime Minister Modi, on Monday allotted portfolios to his council of ministers.

Modi was sworn in as prime minister for the third consecutive term after the NDA won a majority in the recently held Lok Sabha elections. Modi became the only second prime minister to serve three consecutive terms, the first being Jawaharlal Nehru, India’s first prime minister.

(With PTI input)